Explosion Crisis:

Samsung Galaxy Note 7

Samsung Galaxy Note 7

Announced 2016, August

Released 2016, September
Status Discontinued,
11th October 2016
Reason Explosion Crisis
Background Of Crisis
▪ Samsung launched Galaxy note 7, a 4G LTE
phone, in 2016
▪ Better stylus, iris scanning capabilities and
waterproof body
▪ "Secure Folder" capability
▪ A 3,500mAh battery with quick charging and
wireless charging capabilities, a USB-C port
and an always-on display.
▪ Launched in 10 countries on August 19, 2016
▪ 35000 units, on first day of sale
▪ First report, Aug 24th - Note 7 catching fire in
home market of South Korea, followed by more
▪ Viral - “Bomb of one million won”
▪ Sept 2nd - Recall Program by Samsung, excluding
China, that had a different battery supplier
▪ Sept 18th - First Note 7 explosion in China
▪ Oct 5th - Replacement phone caught fire in
southwest Airlines flight - Note 7 banned from
flights
▪ Samsung ceased all sales
▪ Second Recall on Oct 10th
▪ Oct 11th - Note 7 discontinued

4
Analysis of Samsung’s Crisis-PR Strategies
▪ Hold Press Conference - A response, apology, recall claim
▪ Push an App Update - To help reduce the risk of overheating or exploding,
limiting maximum battery charge to 60% - South Korea on Sept 20th
▪ Expand the Recall Program - Refund or replacement, including credit gift
▪ Cease all the Sales - Kill the production lines, permanent cease
▪ Officially Release the Root Cause of the Exploding Incident - Jan 22th, 2017,
Release of press
Battery A - Negative electrode had slight deflection, allowing positive and
negative electrode to meet
Battery B - Abnormal welding burrs on positive electrodes causing direct
contact between the positive tab with negative electrode
Effects & Problems Samsung’s Crisis-Rescuing
Samsung’s crisis PR strategies were unsatisfactory, reflecting poor preparation
▪ Lacking a crisis management plan - Unable to make a quick and appropriate
response, wait and see approach - Setting a thoughtful plan in advance can
ensure effective action-taking, rather than muted response aggravating
media pressure
▪ Samsung’s inconsistency in the causes of the explosion attributed to an
image of dishonesty - Samsung’s different declarations and explanations let
down the customers - During a crisis, it is essential to be transparent.
▪ Samsung’s “Unequal treatment” in note 7 crisis - Launching of Note 7 In
Chinese Market, without considering the safety of customers.
 “
Suggestions Based On Samsung’s Crisis
Note 7 crisis is not just an incident but a symptom of deep problem : a
long term ignorance of crisis management.

▪ Building an awareness of crisis

▪ Treat all customers equally, no matter which market they
are from.
▪ Close attention to quality control
▪ Strengthen cooperation with the new media and provide
accurate and precise information to public
 Conclusion
▪ Samsung’s explosion incident has brought the crisis management into
public view and more companies start to devote efforts to this area.
▪ Although, Samsung’s attempts at managing the note 7 crisis have fallen flat,
this case study still draw some inspirations from its crisis, such as build an
awareness of crisis, strengthen cooperation with the news media ect.
▪ All these suggestions are expected to help companies to deal with crisis
effectively and appropriately.
▪ Limitations - The case study analysis is mainly based on the information
published on the Internet only
Thank You!